Do you have a residential property in Atlanta that hasn’t been used for a long time now, and you’ve decided it’s finally time to sell? Contrary to the impression of “who’s going to buy that house?”, there are actually a lot of buyers out there for distressed properties.
Before you start looking for these buyers, though, it’s important to set some expectations so you can better prepare for the process. Mind you, selling a distressed property is slightly different from selling a property without any issue.
What Is A Distressed Property?
To start off, let us recall what a distressed property is. It’s important to categorize your property so you can better inform your buyers in advance. In general, these are the properties that can be labeled as “distressed.”
- Houses in Disrepair
As the name suggests, these are houses that have physically deteriorated. Broken foundations, leaking plumbing systems, and damaged structures are some of the concerns in a distressed home. Typically, these are homes that haven’t been maintained or repaired for a long time. Owners of these types of houses have either relocated or have no money to make the necessary repairs.
- Houses in Foreclosure
When properties are mortgage delinquent — meaning the owner has an unpaid mortgage — lenders have the right to foreclose or sell the property through a foreclosure sale. In a foreclosure sale, the home is sold through a bidding process.
- Houses Without Owners
In very rare cases, some owners die without identifying an heir. While the law says, “In the event that no will was made, the closest relative will automatically be the rightful heir,” there are still instances when the court isn’t able to locate any close relative. When this happens, the state has the right to take ownership of the property and use (or sell) it to its advantage.
- REO Houses
Houses that don’t get sold during a foreclosure sale/auction become a “Real Estate – Owned” house. Mortgage lenders or the government owns REO properties because they are the ones that conduct a foreclosure auction once a mortgage defaults. Typically, they sell these houses again on the market or through a real estate agent.
If your Atlanta home falls in any of these categories, then it can be called a distressed property, and you can sell it by looking at best practices for selling distressed properties.
4 Things to Know About Selling Your Distressed Property in Atlanta
Distressed properties are often overlooked in the market, especially among retail buyers. Since retail buyers are known to buy homes that could serve as their primary residences, distressed properties are not really enticing (sometimes not even “habitable” to look at). But don’t get discouraged! Distressed properties have a more targeted market, and you’ll find out more about them in the next paragraphs.
Here are four (4) things that you don’t get to hear often about selling a distressed property:
Stricter Appraisal
A property’s value is assessed in three ways: the construction cost, prices of the comps, and the usage potential. When a property is in disrepair, expect that the appraiser will be even more meticulous during their assessment and analysis.
It’s important that you decide on a listing price that’s near the projected appraisal value. If your asking price is way above the appraised value, your buyer’s lender will most likely reject the mortgage application. Moreover, if your buyer’s mortgage gets rejected, you will most likely lose them and end up wasting your time. So again, expect that the appraiser will be stricter with your home.
Longer Closing
Because you will be potentially dealing with a very thorough lender and appraiser, you can expect that it will take a longer time to get your buyer’s go signal. This is one of the disadvantages when you sell a distressed property on the market. If better properties are sold within a week in your area, it doesn’t always mean your distressed home will also sell as fast. Think months!
Interested Buyers Are Mostly Investors
The market for distressed properties is more focused. If you advertise your home on the market, you’ll most likely get inquiries from people who are interested in establishing rental properties or interested in reselling. While retail buyers look at the present condition of a house, real estate investors look at the potential of the house. When selling your distressed house, you should highlight its potential as a rental or a fix & flip.
Seasoned real estate investors are great at spotting properties that have a high-value potential when fixed or sold in the future. That’s why we tell homeowners not to get discouraged. There are so many real estate investors in the world, and the only challenge here is how to reach out.
Interested Buyers Are Mostly Cash Buyers Only
Real estate investors don’t dilly-dally. They know that if your home has great investment potential, other real estate investors may come flocking in. That’s why investors are always ready with cash. They don’t buy properties through a mortgage, and they try to close a deal fast.
To prepare for this, you need to be decisive when dealing with a real estate investor. Most likely, they are also looking at other properties and may back out if you can’t decide/negotiate fast.
There are different kinds of real estate investors like Spire Home Buyers. Selling your distressed property in Atlanta will no longer be bothersome if you choose to sell to us. We can close in as fast as 14 days or less, and we will buy your home for cash at a fair value.
Get an offer from us by calling (678) 318 – 1801 or by sending us your details through the form below!